Equities in Canada’s largest market fell at the open on Thursday, pressured by energy stocks and the heavyweight financial sector.
The S&P/TSX Composite Index dropped 47.82 points to begin Thursday at 16,024.82
The Canadian dollar inched back 0.02 cents to 77.67 cents U.S.
Sources say the two countries struck a private deal in September to raise oil production to cool rising prices.
Canadian mergers-and-acquisitions activity nearly doubled in the third quarter, fueled by deals in the mining, real estate and cannabis sectors.
Canaccord Genuity raised the target price on Aecon Group to $23.00 from $22.00. Aecon shares lost four cents to $17.27.
CIBC cut the price target on TMAC Resources to $7.00 from $8.50. TMAC shares dropped two cents to $4.89.
On the economic slate, Western University’s Ivey School of Business said its Purchasing Managers Index for September registered at a seasonally-adjusted 50.4, substantially lower than August's 61.9, indicating that purchases were greater than the previous month. The number also fell short of the 59.6 figure for September 2017
ON BAYSTREET
The TSX Venture Exchange eked up 0.22 points to 707.47
All but two of the 12 subgroups were lower in Thursday’s first hour, with health-care sliding 1.1%, consumer staples lurching lower 0.9%, and utilities fading 0.8%.
The two gainers were gold, shining 0.5% brighter, and materials, 0.2% better.
ON WALLSTREET
Stocks fell on Thursday as interest rates hit new multi-year highs, dampening investor sentiment.
The Dow Jones Industrial Average fell back 134.56 points from Wednesday’s all-time record close to 26,693.83, as Procter & Gamble lagged.
The S&P 500 lost 9.29 points to 2,916.22, with communications and tech underperforming.
The NASDAQ dumped 64.37 points to 7,960.72, as Facebook, Netflix and Alphabet all dropped more than 1%.
Interest-rate sensitive stocks fell broadly, including Procter & Gamble, which traded 1.3% lower. Bank shares, meanwhile, benefited from the higher rates. J.P. Morgan Chase and Bank of America both traded 1% higher. Citigroup also rose nearly 1%.
Shares of Amazon and Apple both fell after a report said a Chinese equipment manufacturer may have allowed microchips used for spying into some equipment used by Amazon Web Services and the iPhone maker. Both companies dispute the report.
On Thursday, initial jobless claims fell to 207,000, a near 49-year low. The report comes as investors brace for the September jobs report, which is scheduled to be released Friday morning.
Prices for the benchmark for the 10-year U.S. Treasury lost ground, raising yields to 3.19% from Wednesday’s 3.16%. Yields reached a high not seen since 2011. Treasury prices and yields move in opposite directions.
Oil prices eased 77 cents at $75.64 U.S. a barrel.
Gold prices recovered five dollars to $1,207.90 U.S. an ounce.
